Broken Hill IPO raises $4.5 million ahead of stock exchange listing

Monday 7th February 2011

Heritage Gold has announced the initial public offering of base metal explorer Broken Hill Prospecting has raised $4.5 million.

As a result of the successful capital raising Broken Hill is expected to list on the New Zealand and Australian stock exchanges on February 15, with Heritage Gold set to maintain a 21.7% stake in the company after the share issue.

Heritage Gold chief executive Peter Atkinson said, "The Australian and New Zealand stock exchange listings are being undertaken to accelerate and expand development of Broken Hill’s cobalt and base metal tenements at Thackaringa, near the mining centre of broken hill in New South Wales."

Atkinson said he is pleased with the results of the IPO, launched just three days before the Pike Rover coal disaster, leading to an extension of the capital raising to January 31.

He said Broken Hill's recent exploration, managed by Heritage Gold, "encountered strongly anomalous copper, lead and zinc values in lode bearing rocks over 500 metre strike lengths at Pyramid Hill and Himalaya North base metal prospects."

Broken Hill hosts the richest silver-lead-zinc ore body of its type globally, which has been mined continuously for over 120 years, producing approximately 200 million tonnes of high grade ore, valued at more than $80 billion.

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